"The result of this collaboration enables our telecom OEM customers to design transmission equipment that will achieve a 300km reach using Finisar's DM200 butterfly package and Vitesse's EDC chip," said Frank Fan, marketing director at Finisar. "We believe our customers will reap the most benefit by combining the technical strengths of both companies."

Based on Finisar's proprietary CML(TM) technology, the DM200 transmitter is available in a TOSA format or butterfly package and is capable of 4 x 100 GHz or 8 x 50 GHz narrow tunability across C-Band and L-Band wavelengths. The CML(TM) uses a directly modulated standard DFB laser and a passive optical spectrum reshaping (OSR) filter to achieve extended reach.

The VSC8240 is a low-power, CMOS-based CDR with integrated EDC functionality derived
from Vitesse's complete line of EDC and physical layer products covering 10 GbE and SONET/SDH applications for Carrier Ethernet and optical transport networks. The VSC8240 is ideal for single receive path applications, such as single mode fiber (SMF) reach extension applications, in 300 pin modules. The production-ready VSC8240 compensates for both SMF chromatic dispersion and polarization-mode dispersion in a poor OSNR environment. Utilizing a decision-feedback equalizer and feed-forward equalizer (DFE/FFE) EDC architecture, the VSC8240 implements an integrated, self-adaptive algorithm that eliminates costly system adjustments.

"Through our leadership in EDC technology, Vitesse is well-positioned to help our customers quickly bring to market solutions that meet the requirements of next-generation metro, regional and long-haul networks," said Tony Conoscenti, vice president,
product marketing for Vitesse. "Our collaboration with Finisar not only illustrates Vitesse's technical prowess, but also our commitment to working with leading optical module providers to speed and simplify creation of next-generation fiber applications."

About Finisar

Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber optic components and subsystems and network test and monitoring systems. These products enable high-speed voice, video and data communications for networking, storage and wireless applications over Local Area Networks (LANs), Storage Area Networks (SANs), and Metropolitan Area Networks (MANs) using Ethernet, Fibre Channel, IP, SAS, SATA and SONET/SDH protocols. The Company is headquartered in Sunnyvale, California, USA. More information can be found at www.finisar.com.

Vitesse is a registered trademark in the United States and/or other jurisdictions of Vitesse Semiconductor Corporation. All other trademarks or registered trademarks mentioned herein are the property of their respective holders.

Safe Harbor

Statements made in this release that are not
historical facts are "forward-looking" statements (as
defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "hope," "intend," and similar expressions. Factors that could cause actual results to differ are identified in the public filings made by Vitesse with the Securities and Exchange Commission and include the fact that we have disclosed that you should not rely upon our published financial statements and the fact that we have not filed all of our reports required by the Securities Exchange Act of 1934. More information on factors that could affect our business and financial results are included in our public filings made with the Securities and Exchange Commission, which are available on the
web site of the Securities and Exchange Commission, www.sec.gov.

The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. We caution investors that any forward-looking statements made by us are not guarantees of future performance, including, but not limited to, the risks that the recently announced proposed settlement of certain lawsuits against the Company will not be completed or approved by the court, that any court approval will be successfully reversed on appeal, or that the settlement agreement is terminated or cancelled under its terms. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.